The new Employment Act
The new Employment Act
A new employment law has been in force since October 2004. It regulates the implementation of state employment policies, including rules for job placement and entitlement for unemployment benefits, employment of workers with disabilities and employment of foreigners. The new law also defines tools for active policies (Box 5.4) and assigns duties for labour inspection of both Czech and foreign workers. The main changes introduced by this law are: – Stricter registration and reporting requirements with labour offices and conditions for provision of unemployment benefits. – The six-month standard duration of unemployment benefits has been prolonged to nine months for those older than 50 years and to twelve months for those above 55 years of age, conditional on 25 years of participation in pension insurance (30 years for the twelve-month extension). – The amount of unemployment benefit is to remain the same for the first three months of unemployment (at 50 per cent of previous net earnings) but has been increased from 40 to 45 per cent thereafter, with the maximum amount remaining 2.5 times the personal minimum subsistence amount (Table 5.2). – “Partial unemployment” has been introduced, in which the unemployed can earn up to a half of minimum wage (working maximum of a half of legislated fixed working time) and still get unemployment benefit. – Principles and conditions of active labour market policies have been re-defined. – With EU accession, all EU citizens and their families are granted the same legal status on the Czech labour market as Czech citizens. Employment of other foreigners is subject to a labour market test, and its control is assigned to labour offices (Chapter 6).
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